Nearly 50,000 children who are living overseas are receiving child benefit and
tax credits because of European Union regulations, it has emerged.

Figures published by the Treasury showed that 40,171 children living in another member state in Europe were receiving child benefit at the end of last month.

Another 6,838 were receiving “ongoing child tax credit awards” while living in another EU country.

More than half of the children – 25,659 – were living in Poland. In comparison, 2,609 were living in Ireland and 2.003 were living in France.

The payments are worth tens of millions a year and come as the Government is cutting benefits paid to millions of Britons.

Keith Vaz MP, the chairman of the Home Affairs select committee who obtained the figures said: “I am very surprised at this figure. Most people would consider it wrong for people to receive child benefit when the children are living abroad permanently.”

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Around 7.5 million families are currently claiming child benefit for around 13 million children, while 5.2 million families are receiving the child tax credit for almost 9.3 million children.

Treasury minister Sajid Javid said: “The main purpose of child benefit and the child tax credit is to support families in the UK. Consequently, the rules for these benefits generally do not provide for them to be paid in respect of children who live abroad.”

He said the UK was forced to pay out the sums to children living overseas under EC Regulation 883/2004 which “protects the social security rights of nationals of all member states of the European economic area”.

A Government source added: "Thanks to Labour's failure to impose transitional controls on new member states in 2005, Poland is disproportionately benefiting from our welfare system."